What is driving today’s persistently hot housing market? RE/MAX President and CEO Nick Bailey shared his thoughts on the timely topic this morning on CNBC.
Watch the news segment below:
Following the trend of recent years, pent-up demand from prospective buyers remains high in the U.S. in 2022.
“The industry remains highly competitive and there are a couple of things that are happening right now,” Bailey explains. “There is carry-over from last year’s buyer demand of people that wanted in the market but, because it was so competitive, they just didn’t get in. And then we also have [rates] that are rising [and] we have buyers saying, ‘I want to get in now before they [go even] higher. But the third piece is pricing.”
He continues, “Last year was unprecedented. Nationwide, prices were up around 17.3% [and in] other markets even higher. And this year, coming into January, we saw some stabilization in pricing, which is all good news to buyers.”
COVID-19 is a key factor creating a societal shift in how homes are used now.
“Lifestyle has certainly played an important role in the last couple of years of how people live,” Bailey says. “Our consumer study showed last year that the No. 1 feature that buyers wanted was a backyard [and] No. 2 was a home office, so certainly people are using their homes in different ways.”
Catch the CNBC news segment to hear more from Bailey on how changing demand continues to control the housing market.
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Written by RE/MAX News
